The How Why Where When and What of Buying Silver

Gold and Silver vs. Warren Buffett (Total Domination)

Sep01
2011 Leave a Comment Written by admin

I dare someone to ask Warren Buffett about how his company has performed as compared to Gold and Silver.  Rumor has it he will refuse to answer and the questioner will be thrown out on his head and never let back behind the curtain.  (Is it me or does Mr. Buffett look a lot like the Wizard of Oz?)

Well I am hear to pull the curtain back just like Toto did.  Let’s start with some comparisons of Gold and Silver versus Berkshire Hathaway.

1 Month Return – August 2011

Berkshire – -2.2%

Gold +12.8%

Silver +5.8

Year to Date Return – 2011

Berkshire – -8.9%  (yes, he has underperformed the overall market which is flat for the year)

Gold – +30.6%

Silver – +34.8%

5 Year Return

Berkshire – +13% (given the drop in value of the dollar and inflation, you actually lost money if you invested with Mr. Buffett)

Gold – +192%

Silver – +224%

That is what I call total domination.  Anyone who listens to Mr. Buffett or has the unfortunate position of actually investing their money with him, you have now been shown the truth.  The Sage of Omaha is no sage at all.

Posted in fundamental analysis, technical analysis - Tagged ,

Prices of US Junk Silver Coins – 8/18/2011

Aug19
2011 Leave a Comment Written by admin

Prices of US Junk Silver Coins as of 8/18/2011


Posted in Silver Coins

Prices of US Junk Silver Coins – 8/15/2011

Aug15
2011 Leave a Comment Written by admin

Here is a table of the price of US Junk Silver Coins.  I will be updating this from time to time.  I use this to calculate how much to pay for silver coins and how much to charge for the junk coin lots I sell.

 

Posted in Silver Coins

Silver Content of US Coins

Aug12
2011 Leave a Comment Written by admin
I use the following table to determine the amount of silver in US coins when I sell them to people looking to buy junk silver.
Contents of U.S. Silver Coins Total Total Silver Silver
Weight Weight Weight Weight Per
Coin Fineness Grams Ounces Ounces Roll Ounce
Jefferson War Nickels 1942-45 0.3500 5.000 0.16750 0.05626 2.2504
Seated Liberty 1837-1852 0.9000 2.670 0.08584 0.07726 NA
Seated Liberty 1853-1873 0.9000 2.490 0.08005 0.07205 NA
Seated Liberty 1873-1891 0.9000 2.500 0.08038 0.07234 NA
Barber Dime 1892-1916 0.9000 2.500 0.08038 0.07234 3.617
Mercury Dime 1916 to 1945 0.9000 2.500 0.08038 0.07234 3.617
Roosevelt Dime 1946-1964 0.9000 2.500 0.08038 0.07234 3.617
Barber Quarters 1892-1916 0.9000 6.250 0.20094 0.18084 7.234
Standing Liberty Quarters 1916-1930 0.9000 6.250 0.20094 0.18084 7.234
Washington Quarters 1932-1964 0.9000 6.250 0.20094 0.18084 7.234
Barber Half Dollar 1892-1915 0.9000 12.500 0.40188 0.36169 7.234
Walking Liberty Half 1916-1947 0.9000 12.500 0.40188 0.36169 7.234
Franklin Half Dollar 1948-1963 0.9000 12.500 0.40188 0.36169 7.234
Kennedy Half Dollar 1964 0.9000 12.500 0.40188 0.36169 7.234
Kennedy Half Dollar 1965-1969 0.4000 11.500 0.36973 0.14789 2.958
Trade Dollar 1873-1885 0.9000 27.220 0.87512 0.78761 15.752
Morgan Dollar 1878-1921 0.9000 26.730 0.85937 0.77343 15.469
Peace Dollar 1921-1935 0.9000 26.730 0.85937 0.77343 15.469


Posted in Silver Coins

Bad News for US is Good News for Silver and Gold

Aug07
2011 Leave a Comment Written by admin

The US took one giant leap toward becoming less of a economic power in the world when Standard and Poors downgraded the US and its debt from AAA to AA+. This will accelerate the speed in which the US dollar falls out of favor as the world’s default currency.

And without another currency to take its place, the central banks of the world will go back to having an asset backed monetary system that existed 40 years ago with the gold standard. This time there will probably be a basket of assets that will be used to back currencies. The basket will almost certainly contain gold and oil. It could also contain silver but that is not as certain.

With the current global economic turmoil taking place in Europe, the US and Japan, the only way to protect yourself from the destruction of fiat currency is with precious metals. Gold is the first choice but silver should be in your portfolio for its industrial value as well as its intrinsic value.

Posted in fundamental analysis

What Others Say About Buying Silver

Jul19
2011 Leave a Comment Written by admin

I have been bullish on silver since late last year when it traded just below $30.  But it is nice to read what others are saying about silver and whether or not it is a good investment.  Here are some other people’s opinion of silver.

Stuart Burns ties his price prediction of silver to that of gold.  He says that at a ratio of 40 to 1, gold will have to go to $2000 to pull silver up to $50.

Jim Rodgers says silver is going much, much higher.

The guys at Buy Gold Co. have a price target of $50 by the end of the year.

Marc Faber is bullish gold and silver.

Louis Basenese says that silver will underperform gold as silver takes a breather from its huge move in the last 9 months.

Eric Sprott continues to be bullish.

10 oz APMEX Silver Bar .999 Fine

10 oz APMEX Silver Bar .999 Fine

As low as $1.79 per oz over spot!Popular patriotic American Eagle design! In a Deep Mirror Proof-like Finish!

 

Posted in silver buying news - Tagged

What Industries are Buying Silver?

Jul04
2011 Leave a Comment Written by admin

The use of silver in many industries creates the need to continuously mine for new silver.  This is different than gold which has very little industrial demand and is used mainly for jewelry and money.

The biggest industrial users of silver are thick film photovotaics (solar cell manufacturers), automobile manufacturers and computer manufacturers.  These are the largest consumers of silver today and many other industries are developing that could potentially be big users of silver.  Because of this demand, the supply will have to continue to increase.

Mining of silver in 2010 yielded 487 million ounces which was a new record.  That figure is expected to go up to 665 million ounces by 2015.

Anthony David wrote an excellent article on some of the emerging industries that could create even higher demand for physical silver including the use of nanosilver.

Posted in fundamental analysis

Should You Still Consider Buying Silver?

Jun30
2011 Leave a Comment Written by admin

As the price of silver builds a base at or near the $35.00 level, there have been several articles and blog posts that have come out regarding the fundamentals of both silver and gold.  One of the best is the post by Chris Martenson that says both are screaming buys.

Here is what he has to say about silver:

Because of this dispersion effect, above-ground silver is actually at something of a historical low point. When silver was used primarily for monetary and ornamentation purposes, the amount of above-ground, refined silver grew with every passing year. After industrial uses cropped up, that trend reversed, and today there are perhaps 1 billion ounces above ground, when in 1980 there were roughly 4 billion ounces.

Once you read the entire post you see some very compelling reason why both silver and gold should be in your portfolios and you should be accumulating on pullbacks and consolidations.

Posted in fundamental analysis - Tagged

Gold to Silver Ratio

Jun22
2011 1 Comment Written by admin

Although the price of silver and gold usually move in the same general direction when looked at on a longer time scale, they do not always move together in the short term.  In fact, sometimes one of the metals moves significantly in one direction with the other metal hardly moving at all.

Some investors and analysts like to look at the ratio of the prices of gold and silver and make predictions based on where the ratio is versus where is usually is historically.  The problem is there is no historic ratio that you can use.

But there have been some huge swings in the prices lately that indicate one metal is over priced relative to the other.  At todays current prices of $1555 for gold and $36.70 for silver the ratio is 42.37.

Some argue this is too high and that silver, based on its supply compared to gold, should go up in price relative to the price of gold.  Definitely one way of looking at it.  Here is a chart of the historical ratios of the two metals.

Posted in technical analysis

Indians Buying Silver and Gold at Record Levels

Jun21
2011 Leave a Comment Written by admin

In the month of May the country of India increased its buying of silver and gold to the tune of $8.96 Billion. This is a massive increase over previous months and previous years.

Imports of gold and silver were at $8.96 billion in May, a growth of 500% over the previous month and 222% over last year.
“Rapid inflation is eroding the earnings of the common man. One has to understand how the import of gold has reached $9 billion for a month, while the yearly average is around $22 billion,” said Sudhir Chakraborty, bullion analyst at Standard Chartered bank.
“The gold story is puzzling,” added financial analyst A S Kirolar. “Consumers are shying away from stocks and bonds and heading to safe assets like gold and real estate, but one cannot understand this given the meagre 12% growth in imports of petroleum and oil products.”

The people of India understand that the only way to keep from becoming poor as the world banksters devalue every single currency is to buy silver and gold and other precious metals and stones.  Paper and electronic money will be worth less and less every day.


Invest In Silver American Eagles Now

Posted in silver buying news
« Older Entries
Blog WebMastered by All in One Webmaster.